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					        Ministry of
   Economic Development




        2006/07
Annual Service Plan Report
National Library of Canada Cataloguing in Publication Data
British Columbia. Ministry of Economic Development
      Ministry of Economic Development annual service plan report. —  
   2006/07 –

     Annual.
     Continues in part: British Columbia Ministry of Economic Development annual 
  service plan report. ISSN: 1710-6273 
  ISSN 1718-9209 = Annual service plan report (B.C. Ministry of Economic 
  Development) (Print)
     Issued also in electronic version.

      1.  British Columbia Ministry of Economic Development – 
  Periodicals.  2.  Manpower policy – B.C. – Periodicals.  3.  Economic  
  policy – B.C. – Periodicals.  4.  Commercial policy – B.C. – Periodicals. 
  I.  Title.  II.  Title: B.C. Ministry of Economic Development annual service plan 
  report.
       
  HC117.B7B74      354’.0971105      C2006-960066X




    For more information on how to contact the British Columbia 
                Ministry of Economic Development 
      see Ministry Contact Information on Page 32 or contact:

                 Ministry of Economic Development 
                           PO BOX 9324 
                        STN PROV GOVT 
                           VICTORIA BC 
                              V8W 9N3

                        or visit our website at  
                     http://www.gov.bc.ca/ecdev/

         Published by the Ministry of Economic Development
                                     Ministry of Economic Development


                                       Message from the Minister and
                                         Accountability Statement

                   B.C.’s economy continued to grow this past year with an unemployment 
                   rate that reached 3.9 per cent in March — a 31-year record low for the third 
                   straight month. This was an exciting year for the Ministry of Economic 
                   Development with the signing of the British Columbia-Alberta Trade, 
Investment, and Labour Mobility Agreement; unveiling plans for the B.C. Canada Pavilion at 
the 2008 Beijing Summer Olympics, and the launch of the province’s first mobile trades training 
unit.

The Ministry of Economic Development fulfilled its objectives in its 2006/07 Service Plan with 
a focus on workforce attraction, positioning our province as the gateway to the Asia Pacific, 
and preparations to showcase B.C. as an enviable place to live, work and invest through the 
2010 Olympics.

Of the Government’s Five Great Goals, my Ministry primarily focused on creating more jobs 
per capita than anywhere else in Canada. In fact, since December 2001, the economy has created 
371,400 new jobs, the fastest growth rate among provinces. For the fifth straight year, the 
province’s economy has grown faster than the national average.

B.C.’s rapid economic growth created unprecedented demand for skilled workers. My Ministry 
developed a new labour market strategy, WorkBC, that sets out provincial priorities and steps for 
how government, working with business and industry, will address skills shortages for the next 
five years and respond to longer-term labour market challenges.

To help B.C. seize the limitless opportunities presented by this Asia Pacific Century, my Ministry 
released the Asia Pacific Initiative that outlines how government will diversify B.C.’s economic 
ties with the Asia Pacific to leverage our advantages into long-term prosperity.

The 2006/07 Ministry of Economic Development Annual Service Plan Report compares the 
actual results to the expected results identified in the Ministry’s 2006/07 Service Plan. I am 
accountable for those results as reported.




Honourable Colin Hansen 
Minister of Economic Development

June 30, 2007

2006/07 Annual Service Plan Report                                                                
                                                                                                            Ministry of Economic Development



Table of Contents

Message from the Minister and Accountability Statement ....................................................................................................................................... 3

Highlights of the Year .............................................................................................................................................................................................................................................................................. 7

Purpose, Vision, Mission and Values ....................................................................................................................................................................................................................... 9
            Purpose ..................................................................................................................................................................................................................................................................................................................... 9

Strategic Context ............................................................................................................................................................................................................................................................................................... 11

Report on Performance ........................................................................................................................................................................................................................................................................ 14
            Performance Plan Summary Table .................................................................................................................................................................................................................... 14
            Goals, Objectives, Strategies and Performance Results ........................................................................................................................................... 16

Report on Resources ................................................................................................................................................................................................................................................................................... 28
            Resource Summary Table ..................................................................................................................................................................................................................................................... 28

Ministry Contact Information .............................................................................................................................................................................................................................................. 32




2006/07 Annual Service Plan Report                                                                                                                                                                                                                                                                                                     
                                     Ministry of Economic Development



Highlights of the Year
B.C. continues to lead the way in economic growth and prosperity. Since December 2001, B.C.’s 
unemployment rate has fallen 4.8 percentage points and, in December 2006, for the twentieth 
straight month, it was in single digits in every region of the province.

B.C. was only one of two provinces to see more people move in than out in the last months of 
2006. British Columbia’s total population in the third quarter of 2006 rose to 4,310,452 people, 
which is a 1.2 per cent gain over the same period in 2005. This growth rate is higher than the 
national average.

The B.C. Major Projects Inventory quarterly report of March 2007 reported a record 804 major 
capital projects, worth an estimated $124.2 billion, were planned or underway in B.C. between 
January and March 2007. The MPI lists all major projects that are proposed, planned and 
underway in the province, and helps researchers, analysts and businesses plan their projects and 
make timely economic forecasts.

Ministry’s achievements for its core business areas in 2006/07 included:

Internal Trade
• The two provinces signed the British Columbia-Alberta Trade, Investment, and 
  Labour Mobility Agreement at the 4th annual joint British Columbia-Alberta Cabinet meeting 
  in Edmonton on April 28, 2006. The agreement will give businesses and workers in both 
  provinces seamless access to a larger range of opportunities across all sectors including energy, 
  transportation, labour mobility, business registration, and government procurement.

Asia Pacific
• The provincial government expanded the successful Provincial Nominee Program to bring 
  even more skilled and business immigrants to British Columbia.
• The Asia Pacific Trade Council released its first report, from the China/Hong Kong Market 
  Advisory Group, and its second from the India Market Advisory Group.
• The Asia Pacific Initiative and action plan was finalized in 2006/07. By 2020, the annual 
  economic benefit of achieving the Province’s goals in the region is estimated to be a 
  $76 billion trade gain for B.C. alone.

Asia Visit
• The November 13-26, 2006 mission saw Premier Campbell visit Tokyo, Shanghai, Beijing, 
  Hong Kong and Guangzhou; with assistance from the Ministry’s International Marketing unit. 
  The visit highlighted business opportunities in B.C.’s ports, forestry, tourism and alternative 
  energy sectors.

2006/07 Annual Service Plan Report                                                                
                                Ministry of Economic Development


Olympic Games Secretariat
• 2010 Olympic and Paralympic Winter Games Secretariat released a report by Partnerships BC 
  that reviewed Vancouver Organizing Committee’s (VANOC) venue development program. 
  Key elements included a review of the venue costing and designs, and recommending 
  strategies for the Province to oversee venue construction. Looking forward to 2010, that venue 
  construction is on time and on budget.
• A Performance and Accountability Agreement was signed with VANOC in the fall of 2006 as 
  part of a response to recommendations made in the Auditor General’s review.


2010 Commerce Centre
• The B.C. Olympic and Paralympic Winter Games Secretariat’s 2010 Commerce Centre 
  celebrated its 100th 2010 Business Opportunities workshop in March.
• The B.C. Olympic and Paralympic Secretariat’s 2010 Commerce Centre and RBC Financial 
  Group translated the publication Guide for Business Opportunities in the 2010 Winter 
  Games into Punjabi and Chinese.

Infrastructure
• The governments of Canada and British Columbia signed a new infrastructure agreement that 
  provided $102 million in combined funding to projects in communities across B.C.


Industry Training
• The Province’s Industry Training Authority has exceeded its participation performance 
  targets for the third year in a row, increasing the number of active apprentices and trainees 
  by 132 per cent since 2004. As of March 31, 2007, the ITA reported a total of 34,049 
  apprentices and 9,575 employers/sponsors offering placements.
• The Province received “Trade Routes,” a mobile training unit for rural and Aboriginal 
  communities in northern British Columbia.

WorkBC
• Spring 2007 saw the launch of the WorkBC strategy and website. WorkBC is an innovative 
  new labour market strategy to ensure the Province’s success in meeting key economic priorities 
  and advancing B.C.’s global economic competitiveness.




                                                                     2006/07 Annual Service Plan Report
                                     Ministry of Economic Development



Purpose, Vision, Mission and Values

Purpose
The purpose of the Ministry of Economic Development is to build a strong provincial economy 
that supports job creation and maximizes economic opportunities for citizens throughout the 
province. The Minister is also responsible for the 2010 Olympic and Paralympic Winter Games 
and strengthening our province as Canada’s Pacific Gateway to Asia.

The Ministry supports these initiatives through partnerships, policies and programs that:
   • market and promote B.C. to expand trade and investment opportunities, increase sales and 
     exports of goods and services and encourage immigration of skilled workers and business 
     investors;
   • enhance economic development and growth by maintaining a competitive business 
     environment, increasing diversification of regional and provincial economies, providing 
     infrastructure for a growing economy and responding to the increasing demand for skilled 
     labour; and
   • provide leadership and oversee the Province’s financial commitments required to host a 
     successful 2010 Olympic and Paralympic Winter Games and to maximize the economic 
     and social benefits from the Games.

The Ministry leads the Asia Pacific Initiative, a priority cross ministry initiative that provides the 
strategic direction for B.C. to capitalize on its Pacific Gateway advantages and to ensure B.C.’s 
actions are strategically oriented towards Asia — the driving force in the global economy.

The Ministry continues to work with other Ministries to pursue regulatory reform and streamline 
initiatives further to B.C. Competition Council recommendations. The Ministry also continues 
to review all government regulations and legislation to ensure they are compliant with the  
B.C.-Alberta Trade, Investment and Labour Mobility Agreement.

A listing of the Crowns, Agencies, Boards and Commissions that the Ministry oversees can be 
found at: http://www.ecdev.gov.bc.ca/general/relatedorgs.htm




2006/07 Annual Service Plan Report                                                                    
                                Ministry of Economic Development


Vision, Mission and Values

Vision
Jobs and economic prosperity for all British Columbians, in every region of the province.


Mission
The Ministry of Economic Development works for British Columbians to build the best 
performing economy in Canada, through maximizing the benefits of B.C.’s diverse economy, 
its proximity to emergent opportunities in Asia, and the 2010 Olympic and Paralympic 
Winter Games.

Values
We are committed to ensuring economic growth, jobs and investment in the province to 
maintain a high quality of life for all British Columbians.

We work with, and listen to, stakeholders in all regions of B.C.

We are committed to developing new and innovative approaches.




10                                                                  2006/07 Annual Service Plan Report
                                     Ministry of Economic Development



Strategic Context
The strategic context is an assessment of the general economic environment that the Ministry 
and business community faced during 2006/07. It also describes some of B.C.’s challenges and 
opportunities in 2006/07 and in the near term.

In 2006, British Columbia’s economy continued to perform at an exceptional level. Growth 
in GDP for 2006 is estimated to have been 3.6 per cent, higher than the 3.4 per cent rate 
forecast in the Balanced Budget 2006. Strong consumer spending and investment helped make 
British Columbia’s economic growth rate the second highest among provinces in 2006.

Employment growth in 2006 was robust — an increase of 3.1 per cent over 2005 and translating 
into 65,000 new jobs created. This strong performance also meant that B.C. was ranked only 
second to Alberta in job creation for Canadian provinces. Unemployment averaged 4.8 per cent 
in 2006 and had decreased to only 4.6 per cent by year end, while the youth unemployment rate 
also declined to 8.2 per cent. Both figures are at their lowest levels in 30 years.

Total business investment (including residential) expanded by 9.5 per cent in 2006. Residential 
housing starts in 2006 surged to 36,400. Real investment in non-residential building 
construction grew by 9.2 per cent in 2006. Business machinery and equipment investment rose 
an estimated 14.9 per cent (inflation adjusted).

The Budget and Fiscal Plan released with the February 2007 Budget provides additional 
information on B.C.’s economic performance and outlook: http://www.bcbudget.gov.bc.ca/2007/


Key Challenges
Strong Canadian Dollar:  The appreciation of the Canadian dollar slowed but continued 
in 2006/07. In early April 2006, the dollar was valued at 85.3 cents US and, by the end of 
March 2007, it had climbed to nearly 87.0 cents US. Both these figures are up from the 
78.0 cents US average in 2004. The dollar also gained internationally against many of the 
world’s other currencies.

Export Growth Rooted in the Resource Industries:  Strong commodity prices have supported the 
province’s economic and export growth. Any downturn in prices will be buffered by the strength 
of the service sector, which accounts for four out of five jobs in B.C. and a reduced dependence 
on resource extraction, which accounts for only nine per cent of employment compared to 
13 per cent in 1990. The high tech sector now accounts for six per cent of GDP and continues 
to grow faster than the rest of the economy. The value of high tech services exports is three times 
that of goods and is growing four times faster.




2006/07 Annual Service Plan Report                                                               11
                                 Ministry of Economic Development


Productivity:  Improvements to productivity in B.C. have generally lagged that of other 
Canadian provinces and American states. The latest productivity indicators place B.C. as fifth 
among provinces, up slightly from last year’s ranking but still significantly lower than provinces 
such as Alberta and Ontario. Improvements in productivity are necessary, both to fuel economic 
growth and raise B.C.’s standard of living.

Demographics and Skill Shortages:  According to the B.C. Competition Council, human 
resources and skill shortage issues are the number one concern for B.C. companies. B.C.’s robust 
economic growth and record low unemployment rate have increased the shortage of highly-skilled 
people that businesses need to grow and expand. Immigration is now the key source of labour 
force growth in B.C. We must make good use of every labour market resource we have. 
New workers from within B.C. must be encouraged and hired, especially under-utilized workers 
such as those with disabilities, those who lack training, skilled immigrants and women.

United States Security and Trade Restrictions:  Some export dependent, and goods 
transportation industries face market access risks from new and proposed United States 
anti-terrorism rules and heightened security at borders. Heightened security measures will 
also have an impact on security reviews conducted for prospective immigrants.


Key Economic Development Opportunities

2010 Olympic and Paralympic Winter Games:  The 2010 Winter Games will open up new 
opportunities for investment and trade development, awareness building along with increases 
in tourism, and will help raise B.C.’s international profile. VANOC will purchase more than 
$2 billion in goods and services to stage the Games. Infrastructure investments leading up to the 
Games will give a significant boost to the provincial economy.

Asia Pacific Initiative:  B.C. is Canada’s gateway to the growing Asia Pacific region. Establishing 
B.C. as the pre-eminent trade and cultural hub between Asia and North America (which includes 
trade, commerce, education, transportation, immigration, innovation and culture) will ensure all 
British Columbians and Canadians benefit from our growing relationship with and proximity 
to the Asia Pacific. Asia’s dramatic demographic changes have created a demand for not only 
our traditional resource products, but also new products and services in areas such as urban 
infrastructure design, planning and development; engineering; clean technology; health care; and 
tourism — all areas where B.C. has expertise and a competitive advantage.

Cost Advantages:  The Ministry worked aggressively in 2006/07 to attract companies to 
locate facilities in British Columbia as well as to retain and expand the existing foreign-owned 
businesses already here. The province competed head-to-head with Canadian provinces, 
U.S. jurisdictions and locations in Europe and Asia. Even as the Canadian dollar appreciated, 
British Columbia continued to offer a significant cost advantage over the United States and 
G-7 countries — in industries as varied as call centres, software development, research and 


12                                                                    2006/07 Annual Service Plan Report
                                     Ministry of Economic Development


development, and value-added manufacturing. This conclusion was validated by the international 
accounting giant, KPMG. Their report entitled “Competitive Alternatives: KPMG’s Guide to 
International Business Costs” analyzed nine countries, 12 industries and 27 cost components.

Competitive Tax Environment:  In 2006/07, B.C. further buttressed its reputation as an 
attractive location to live and work by announcing its third reduction of personal income tax 
rates since 2000. Rates were reduced by about five per cent for the 2007 tax year and 10 per cent 
for 2008 and subsequent years. B.C. will have the lowest personal income tax burden in Canada 
for individuals earning up to $108,000.

Eliminating Trade Barriers:  B.C. is leading the way to eliminate barriers to internal and 
international trade. The B.C.-Alberta Trade, Investment and Labour Mobility Agreement is 
Canada’s most comprehensive internal trade agreement, creating a market of 7.7 million people 
and Canada’s second largest economy. It sends a signal to the rest of the world that B.C. and 
Alberta are serious about building a highly-competitive and prosperous region. B.C. is also 
co-chairing the development of an Action Plan on International Markets and Trade for the 
Council of the Federation. B.C. supports all efforts to reduce or eliminate barriers to trade and 
investment, particularly in Asia Pacific markets. B.C. is participating with the federal government 
in efforts to expand international trade opportunities for services and to achieve bilateral free 
trade, investment, and air transportation agreements with jurisdictions such as South Korea, 
Singapore, and the European Union.




2006/07 Annual Service Plan Report                                                               1
                                                 Ministry of Economic Development



Report on Performance
Performance Plan Summary Table
The following Performance Plan Summary Table summarizes the Ministry’s progress with regards 
to its performance targets.

Goal 1: British Columbia is recognized globally as a preferred place to live,
        work, invest and do business, and as a key gateway for commerce on                             2006/07                    2006/07
        the Pacific Coast.                                                                              Target                     Actual
        For greater detail see pages 16 to 21.
1.1 Increased recruitment and accelerated permanent resident status for
    skilled professionals and business investors.
                                                                                                                                $37.2 M
        Number of new immigrant investors and value of their investments.                               $72 M
                                                                                                                             Not Achieved 1
        Number of new immigrants attracted to B.C. as business immigrants or                                                       2,833
                                                                                                        1,375
        skilled workers.                                                                                                         exceeded
1.2 Increased foreign direct investment to expand and diversify business
    opportunities in B.C.
                                                                                                                                  148 2
        Number of investment leads identified by in-market representatives.                               192
                                                                                                                              Not Achieved
1.3 Increased availability of venture capital to encourage innovation
    business development in B.C.
                                                                                                                                  $2.54 B
        Venture capital growth in the province year-over-year.                                          $2.4 B
                                                                                                                                 exceeded
 1
     Value of investments in B.C.’s share of federal Immigrant Investor Program funds allocated to provinces.
 2
     Target is based on the deployment of 8 in-market representatives per year; only 4 in-market representatives were in place during 2006/07.


Goal 2: All British Columbians live in prosperous regions and are able to
                                                                                                       2006/07                    2006/07
        achieve their economic potential.
                                                                                                        Target                     Actual
        For greater detail see pages 21 to 25.
2.1 Advance economic growth and enhanced business competitiveness in
    every sector and region.
                                                                                                                                   $9.1 B
        Industry investment projects, assisted by the Ministry, investment $ value and                 $7.5 B
                                                                                                                              11,512 new jobs
        new jobs created.                                                                          8,000 new jobs
                                                                                                                                 exceeded
                                                                                                                              $97 M leveraged
                                                                                                  $70 M leveraged
        Federal, municipal and private funds invested to match provincial investment                                          $36 M provincial
                                                                                                  $35 M provincial
        in community infrastructure.                                                                                               funds
                                                                                                       funds
                                                                                                                                exceeded




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                                                  Ministry of Economic Development


 Goal 2: All British Columbians live in prosperous regions and are able to
                                                                                                        2006/07                 2006/07
         achieve their economic potential.
                                                                                                         Target                  Actual
         For greater detail see pages 21 to 25.
 2.2 Increased and accelerated credential assessments for new Canadians in
     trades/professions.
                                                                                                                                   826
       Number of skilled immigrants entering the workforce through Skills Connect.                         877                SubStANtively 
                                                                                                                               Achieved 1
  1
      Nine months of operation yielded 94 per cent of target or 826 applicants. Twelve month trend is for 1,080 applicants.


 Goal 3: B.C. hosts a successful 2010 Olympic and Paralympic Winter Games to
                                                                                                        2006/07                 2006/07
         create a legacy of economic benefits for the province.
                                                                                                         Target                  Actual
         For greater detail see pages 25 to 27.
 3.1 The Province’s financial commitments to the 2010 Winter Games
     are met.
                                                                                                                                 On time,
       Success rate in meeting milestones of the Provincial commitments to the                          On time,
                                                                                                                                on budget
       2010 Winter Games.                                                                              on budget
                                                                                                                                Achieved
 3.2 2010 Winter Games business opportunities and jobs are maximized
     throughout the province .
       Cumulative total of businesses registered for the 2010 Winter Games                                                        4,300
                                                                                                          3,000
       procurement opportunities.                                                                                               exceeded




2006/07 Annual Service Plan Report                                                                                                             1
                                                 Ministry of Economic Development


Goals, Objectives, Strategies and Performance Results

Goal 1: B.C. is recognized globally as a preferred place to live,
        work, invest and do business and as a key gateway for
        commerce on the Pacific Coast

Objective 1.1: Increased recruitment and accelerated permanent resident status
               for skilled professionals and business investors
This objective focuses on maximizing the benefits of immigration by attracting and retaining 
immigrants and enabling permanent resident status for skilled professionals and business investors 
who are best able to contribute to B.C.’s economy.
Strategies
Key strategies for this objective include:
         • increase international promotional and recruitment activities to attract more qualified 
           business immigrants and provincial nominees; and
         • reduce processing time for applicants through the B.C. Provincial Nominee Program.


Performance Results
                      Performance                              2005/06                2005/06               2006/07               2006/07
                       Measures                                Baseline                Actual                Target                Actual
Number of new immigrant investors 3 and value                    119 3                                                          $37.2 M
                                                                                      $58.8 M                $72 M
of their investments. 1                                         $47.5 M                                                       Not Achieved
Number of new immigrants attracted to B.C. as                                                                                      2,833
                                                                 1,300                 2,491                  1,375
business immigrants or skilled workers. 2                                                                                        exceeded
     1
       Data Source: Ministry of Economic Development (value of investments in B.C.’s share of federal Immigrant Investor Program funds allocated
       to provinces).
     2
       Data Source: Ministry of Economic Development and Citizenship and Immigration Canada statistics (federal program numbers are for the
       calendar year).
     3
       This 2005/06 measure has been removed from the Ministry’s 2007/08 Service Plan and will not be reported on in the future (see text).




16                                                                                                     2006/07 Annual Service Plan Report
                                     Ministry of Economic Development


Discussion of Results

Number of new immigrant investors and value of their investments
B.C. receives a share of the annual funds obtained from immigrants approved under the federal 
Immigrant Investor Program. These funds are held by the BC Immigrant Investment Fund, a 
provincial Crown corporation. The BC Immigrant Investment Fund is governed by a Board of 
Directors appointed by the Ministry.

This performance measure reports only the value of investments, since the number of immigrants 
received by B.C. through the federal Immigrant Investor Program is independent of the 
Province’s share of the funds it receives under a federal allocation formula.

The actual amount received each year is based on B.C.’s share of Canada’s population and 
GDP, and the total amount of investment paid into the federal Immigrant Investor Program. 
The amount raised each year can fluctuate significantly due to changing “push” and “pull” factors 
that drive business/investor immigration, competition from other countries, and the variety of 
Canadian immigration options available to business/investor immigrants.

The target for this measure was not achieved due a drop in funds raised under the federal 
Immigrant Investor Program. The result was 20 per cent below the 2005/06 baseline, but would 
be comparable with results for other provinces that participate in the federal Immigrant Investor 
Program as funding is allocated to provinces according to a fixed formula. The baseline measure 
for value of investments was obtained from financial reports of the BC Immigrant Investor 
Fund, a Crown corporation, which receives and manages the Province’s allocation of the federal 
Immigrant Investor Program funds. The baseline year was established for 2005/06 to reflect the 
creation of the new fund.

Ministry Response
This measure was eliminated from the 2007/08 Service Plan as the Ministry has no influence 
over this activity.


Number of new immigrants attracted to B.C. as business immigrants or skilled workers
B.C. attracts business and skilled immigrants through several programs, including the 
B.C. Provincial Nominee Program (PNP), the federal Entrepreneur Program and the federal 
Immigrant Investor Program. The Province only has direct control over the B.C. Provincial 
Nominee Program. This program helps B.C. employers to recruit skilled workers, and also offers 
a business immigration alternative to the federal entrepreneur and investor programs.
This measure reports on the Province’s success in attracting business immigrants and skilled 
workers under the B.C. Provincial Nominee Program, the federal Entrepreneur Program, and the 
federal Immigrant Investor Program.


2006/07 Annual Service Plan Report                                                              1
                                    Ministry of Economic Development


The baseline measure was a forward-looking estimate by the Ministry based on B.C. Provincial 
Nominee Program statistics and Citizenship and Immigration Canada statistics for the federal 
Entrepreneur and Immigrant Investor Program. The baseline measure was established in 2005/06 
to reflect significant changes in the operations of the B.C. Provincial Nominee Program.

                                                      The result for this measure substantially 
               How the 2006/07                        exceeded the target and baseline figures. 
         Actual number was calculated                 Results for this measure can vary from year to 
                                                      year due to changing “push” and “pull” factors 
                                    2006/07 Actual
                                                      that drive business and skilled immigration, 
     PNP Strategic Occupations               1,254    competition from other countries, and the 
     PNP Business                              78     variety of Canadian immigration options 
     Federal Entrepreneur program             249     available to immigrants. The continuing 
                                                      strong performance of B.C.’s economy and a 
     Federal Investor Program                1,252
                                                      significant expansion of the B.C. Provincial 
                            TOTAL           2,833
                                                      Nominee Program have had a positive impact 
                                                      on this result.


Ministry Response
This measure has been changed in the future to only report on business and skilled immigrants 
approved under the B.C. Provincial Nominee Program, since the Ministry has no ability to 
influence immigration under federal programs.

The Ministry will continue to aggressively promote and expand the B.C. Provincial Nominee 
Program to ensure that the province continues to attract the skilled workers and business 
immigrants it needs to support continued job creation.


Objective 1.2: Increased Foreign Direct Investment to expand and diversify
               commercial opportunities in B.C.
This objective is aimed toward promoting the province’s advantages and opportunities in order 
to increase trade and investments in high-growth, high-opportunity sectors. The Ministry will 
also focus on facilitating capital investment projects, particularly in the regions. Foreign direct 
investment contributes to job creation, capital investment, productivity growth, and innovation, 
which in turn supports economic growth.




1                                                                     2006/07 Annual Service Plan Report
                                               Ministry of Economic Development


Strategies
Key strategies for this objective include:
   • leverage commercial opportunities in the Asia Pacific and the awareness of the 
     2010 Winter Games to increase foreign direct investment and commerce for B.C.;
   • lead B.C.’s international activities with other western provinces through the 
     Western Canada Secretariat;
   • develop and implement the Asia Pacific Initiative, incorporating recommendations from 
     the Asia Pacific Trade Council;
   • identify, service, and attract foreign direct investment from international markets;
   • engage B.C. representatives in the European, Asian and U.S. markets to undertake foreign 
     direct investment attraction and trade promotion activities; and
   • build stronger partnerships with key players active in Asia Pacific marketing and 
     international business development


Performance Results

                   Performance                               2005/06                2005/06                2006/07                  2006/07
                     Measure                                 Baseline                Actual                 Target                   Actual

Number of investment leads identified by                                                                                          148
                                                                New                    N/A                   1921
in-market representatives                                                                                                     Not Achieved

  Data Source: Internal database tracking the number of corporate meetings and other activities related to investor firms and the
  B.C. representatives.
  1
    Target is based on deployment of 8 in-market representatives per year.




2006/07 Annual Service Plan Report                                                                                                            1
                                  Ministry of Economic Development


Discussion of Results

Number of investment leads identified by in-market representatives.
The Ministry engages B.C. representatives in 
key foreign markets to undertake investment 
attraction and trade promotion activities on                        definition: Lead
behalf of B.C. This measure represents the          A “lead” is defined here as an investment project
number of foreign direct investment leads           that has a shortlist of locations (including B.C.),
identified by these B.C. representatives.           a budget and corporate executives or site selectors
An investment lead is defined as a company          that have visited B.C. in the course of their
that has an investment project planned, a           research.
short list of locations, a budget assigned and 
a project lead.

The 2006/07 target number of investment leads identified by in-market representatives was 
not achieved. The baseline and target was calculated to reflect a total of eight in-market 
representatives in Asia, U.S., and Europe. However, at the end of 2006/07, only four in-market 
representatives were in place to cover these jurisdictions, therefore the Ministry’s ability to meet 
the target was compromised. Had there been a full staff complement for all of 2006/07 it is likely 
that the target would have been exceeded.

Ministry Response
An additional three in-market representatives have been identified and will be fully operational in 
2007/08. This should allow the Ministry to achieve its target in future years.


Objective 1.3: Increased availability of venture capital to encourage innovation
               business development in B.C.
This objective is aimed toward increasing the amount of venture capital available to B.C. small- 
and mid-size businesses. It enables them to grow and compete in fields requiring intensive 
research and development. Venture capital will allow companies to increase diversification and 
enhance their economic performance. In addition, the Ministry efforts in repealing outdated and 
obsolete legislation and regulations makes it easier and more efficient to raise capital, invest and 
do business in B.C.

Strategies
Key strategies for this objective include:
     • Maximize availability of venture capital in the province.
     • Performance results.

20                                                                       2006/07 Annual Service Plan Report
                                             Ministry of Economic Development


                  Performance                             2005/06               2005/06               2006/07    2006/07
                    Measure                               Baseline               Actual                Target     Actual
 Venture capital growth in the province                                                                           $2.54 B
                                                            $2.2 B               $1.98 B               $2.4 B
 year-over-year.                                                                                                 exceeded
  Data Source: Thomson Macdonald (Venture Reporter Database). This database is based on voluntary submissions.



Discussion of Results

Venture capital growth in the province year-over-year.
This measure gauges how innovative small businesses continue to have access to capital and to 
attract investment capital from outside the province.

The amount of venture capital under management in British Columbia is extracted from 
Thomson Venture Economics Database. This national database monitors venture capital activity 
and investment in Canada.

The target of $2.4 billion in venture capital growth was exceeded by an additional $140 million, 
totaling $2.54 billion in venture capital in the province.

This measure will be enhanced for the 2006/07 – 08/09 Service Plan to provide greater clarity and 
include tracking of B.C.’s percentage value of total venture capital investment for all of Canada. 
B.C.’s share of the national venture capital investment has been increasing since 2003 at which 
time the province only secured 7 per cent of all venture capital invested in Canada. This figure 
has increased to 17 per cent since 2003, which is a significant improvement that in part can be 
attributed to the success of the Ministry’s early stage venture capital programs.


Goal 2: All British Columbians live in prosperous regions and
        are able to achieve their economic potential

Objective 2.1: Advance economic growth and enhanced business competitiveness
               in every sector and region
This objective focuses on fostering economic growth and diversification and improving the 
province’s business competitiveness in all provincial regions and sectors. The Ministry provides 
assistance for infrastructure development across the province and partners with governments 
and the private sector to advance growth and diversification, particularly within regional 
communities.




2006/07 Annual Service Plan Report                                                                                          21
                                                  Ministry of Economic Development


Strategies
Key strategies for this objective include:
         • work with the B.C. Competition Council to conduct a comprehensive review of B.C.’s 
           competitiveness and recommend government and private-sector actions;
         • lead the implementation of economic initiatives that support government’s strategic 
           priorities and advance key sectors;
         • work to remove barriers to inter-provincial trade through the Premiers’ Council of the 
           Federation, the existing national Agreement on Internal Trade, and other negotiations;
         • establish regional economic development trusts to enable locally led projects to diversify 
           their economies and to support regional alliances;
         • work with key partners and investors in communities to facilitate economic development 
           on the ground;
         • continue to improve federal and provincial relationships to enhance the delivery of joint 
           funding programs;
         • lead the facilitation and negotiations across government of major industry investment 
           projects; and
         • work with the Industry Training Authority and employers to increase the number of 
           apprentices in B.C.


Performance Results
                       Performance                              2005/06               2005/06            2006/07           2006/07
                        Measures                                Baseline               Actual             Target            Actual
Industry investment projects, assisted by the                                                                               $9.1 B
                                                                 $7 B                                     $7.5 B
Ministry, investment $ value and new jobs                                               New                            11,512 new jobs 3
                                                            7,500 new jobs                            8,000 new jobs
created. 1                                                                                                                exceeded
                                                                                                                       $97 M leveraged
Federal, municipal and private funds invested               $70 M leveraged      $201 M leveraged    $70 M leveraged
                                                                                                                       $36 M provincial
to match provincial investment in community                 $35 M provincial      $93 M provincial    $35 provincial
                                                                                                                            funds
infrastructure. 2                                                funds                 funds              funds
                                                                                                                         exceeded
     1
         Data Source: Internal statistics.
     2
         Data Source: Actual payments from various branch programs during the 2006/07 fiscal year.
     3
         Calculation accounts for additional projects and revised estimates for jobs.




22                                                                                                   2006/07 Annual Service Plan Report
                                     Ministry of Economic Development


Discussion of Results

Industry investment projects, assisted by the Ministry, investment $ value and new jobs
created.
The Ministry works with major industry investors to clarify regulatory requirements, provide an 
initial single contact point where more than one regulatory agency is involved, engage with key 
agencies and proponents, advise on approaches to work with First Nations and assist in project 
and agency specific issue resolution to move projects ahead. This measure shows the total jobs 
created and investment value if the project becomes operational.
The target of $7.5 billion in industry investment projects was exceeded by an additional 
$1.6 billion, totaling $9.1 billion in industry investment in the province. Job creation through 
these Ministry assisted projects also surpassed its target by 3,512 new jobs.

Ministry assistance ranges from providing direct information on government programs and 
services to investors, assisting the investor to prepare for and complete required regulatory 
processes, providing advice on relationships with First Nations, and problem solving and issues 
resolution to move projects forward. The decision to invest remains with the investor.

Federal, municipal and private funds invested to match provincial investment in community
infrastructure.
This measure gauges the success of the Ministry in maximizing the efficiency of provincial 
contributions in leveraging federal, municipal and private funding to support community 
facilities, infrastructure and other regional development projects. The basis for target setting 
comes from joint federal/provincial agreements.

Exceeding the target figure is a reflection of successful completion of projects by the award 
recipients. This is a result of the detailed technical analysis of funding requests undertaken by the 
Infrastructure Development Branch that ensures only those applications from groups most able 
to commence their projects in a timely manner are brought forward for decision.


                                          Major Projects Inventory
    The Ministry tracks both private and public investment in the province through the quarterly BCStats
    publication entitled the “Major Projects Inventory”.
    It can be accessed through the following website: http://www.bcstats.gov.bc.ca/pubs/pr_mproj.asp


Measure Eliminated:  Regional and municipal competitiveness indicators.

This performance measure has been eliminated as regional competitiveness indicators are not a 
measure of the Ministry’s performance, but a combination of municipal and regional policy and 
industry factors.

2006/07 Annual Service Plan Report                                                                         2
                                                  Ministry of Economic Development


Objective 2.2: Increased and accelerated credential assessments for new
               Canadians in trades/professions.
This objective focuses on reducing the time it takes to assess credentials of foreign-trained 
immigrants and increasing the number of those who are assessed, which will accelerate placing 
new Canadians in skilled jobs. The degree to which skill shortages are averted will help ensure 
that the province has a skilled workforce and be a large determinant of B.C.’s future economic 
prosperity and social health.


Strategies
Key strategies for this objective include:
      • work with the federal government and professional organizations to increase jobs and speed 
        up credentialing for new Canadians in trades/professions;
      • work with other Ministries, agencies and labour market partners to lead the development 
        and implementation of a provincial labour market strategy; and
      • assist new immigrants to overcome barriers to employment through the B.C. Skills 
        Connect for Immigrants Program.


Performance Results
                      Performance                                2005/06                2005/06                2006/07         2006/07
                        Measure                                  Baseline                Actual                 Target          Actual
                                                                                                                                826 1
Number of skilled immigrants entering the
                                                              New program                  N/A                       877    SubStANtively 
workforce through Skills Connect.
                                                                                                                              Achieved
     Data Source: Skills Connect database.
     1
       94 per cent of the target was attained in nine months of operation, twelve month trend is 1,080 applicants.



Discussion of Results
Number of skilled immigrants entering the workforce through Skills Connect.
This measure gauges the success of the Skills Connect program in supporting skilled immigrants 
to integrate into the labour force, in jobs that match their previous skills, knowledge and 
experience.

Program ramp-up was delayed due to relocation of the program delivery centre. As a result, 
Skills Connect became fully operational in July 2006. Additional program enhancements were 
implemented in the 2nd quarter of 2006, which resulted in increased client intake in the 3rd and 
4th quarters.

24                                                                                                        2006/07 Annual Service Plan Report
                                     Ministry of Economic Development


Ministry Response

Estimates based on nine months of operation in 2006/07 indicate that the number of skilled 
immigrants receiving services through the Skills Connect program is on track to exceed the 
original targets.

Measure Under Development:  Number of persons assessed and time to complete assessment
of credentials of persons trained abroad.
This measure will gauge the effectiveness in reducing the time that professionals and trades 
persons trained abroad are credentialed and subsequently employed is a significant contributor to 
a skilled workforce.
This is a new measure that appears in the Ministry’s 2006/07 – 2008/09 Service Plan. 
Performance measures and targets are currently being established and will be reported upon 
in the 2007/08 Annual Service Plan Report.


Goal 3: B.C. hosts a successful Vancouver 2010 Olympic and
        Paralympic Winter Games to create a legacy of
        economic benefits for the Province.

Objective 3.1: The Province’s financial commitments to the 2010 Winter Games
               are met.
The 2010 Olympic and Paralympic Winter Games Secretariat’s primary role is to provide 
strategic leadership, coordination and oversight to ensure the Province meets its financial, 
infrastructure and service commitments for the 2010 Winter Games.


Strategies
Key strategies for this objective include:
   • ensure the Province’s financial commitments to the 2010 Winter Games do not exceed the 
     approved budget; and
   • oversee and monitor legal structures and funding mechanisms to support Games-related 
     initiatives.




2006/07 Annual Service Plan Report                                                              2
                                                 Ministry of Economic Development


Performance Results
                      Performance                         2005/06       2005/06        2006/07           2006/07
                        Measure                           Baseline       Actual         Target            Actual
Success rate in meeting milestones
                                                          On time,       On time,       On time,
of the provincial commitments to the                                                                    Achieved
                                                         on budget      on budget      on budget
2010 Winter Games.
     Data Source: Government of B.C. fiscal budgets.



Discussion of Results

Success rate in meeting milestones of the provincial commitments to the 2010 Winter Games.
The 2010 Olympic and Paralympic Winter Games Secretariat is the primary provincial 
organization responsible for ensuring B.C.’s investment in the 2010 Winter Games results in an 
event that is on time and within the approved budget.

This measure assesses whether project management is within standard provincial accounting 
and financial management practices. Performance measures assess the effectiveness of providing 
oversight and following the provincial financial management framework in managing the 
$600 million funding envelope and meeting the milestones of the provincial commitments.

Expenditures made on individual components were within the established budget.


Objective 3.2: 2010 Winter Games business opportunities and jobs are
               maximized throughout the province.
The Secretariat plays a key role in ensuring that opportunities associated with hosting 
the 2010 Winter Games are identified early and realized before, during and after the 
2010 Winter Games and that these opportunities evolve into enduring legacies for communities 
around the province.




26                                                                                  2006/07 Annual Service Plan Report
                                             Ministry of Economic Development


Strategies
Key strategies for this objective include:
   • work with lead agencies and partners to provide tools and information for communities 
     and businesses, using such tools as the 2010 Commerce Centre to pursue the 
     2010 Winter Games related opportunities;
   • provide timely and effective issues management within the province and among partners 
     and stakeholders;
   • act as a coordination hub for provincial activities, projects and key relationships related to 
     the 2010 Winter Games; and
   • develop and deliver tools for community and stakeholder outreach.


Performance Results
                   Performance                               2005/06    2005/06   2006/07   2006/07
                     Measure                                 Baseline    Actual    Target    Actual
 Cumulative total of businesses registered for the                                            4,300
                                                              1,500      1,879     3,000
 2010 Winter Games procurement opportunities.                                               exceeded
  Data Source: 2010 Commerce Centre registration database.



Discussion of Results

Cumulative total of businesses registered for the 2010 Winter Games procurement
opportunities.
This measures the effectiveness of the outreach programs to B.C. businesses for the 
2010 Olympic and Paralympic Winter Games by calculating the cumulative total of 
businesses registered for the procurement opportunities advertised by the 2010 Commerce 
Centre. B.C. and Canadian businesses are able to register and receive directed information on 
business arising opportunities. This measure is important because it reflects the success of the 
2010 Commerce Centre to engage B.C. businesses and communities.

The 2006/07 target was exceeded by an additional 43 per cent, due greatly to the success of the 
offered outreach programs and higher than anticipated uptake.




2006/07 Annual Service Plan Report                                                                     2
                                                                                       Ministry of Economic Development



Report on Resources
This section provides information on the Ministry’s operating expenditures, full-time equivalent 
(FTE) staff allocation, and capital expenditures for 2006/07. The table below and on the 
following page summarizes operating information for each core business area and is consistent 
with the Ministry’s 2006/07 – 2008/09 Service Plan.


Resource Summary Table
                                                                                                         Other             Total
               Core Business Areas                                                 Estimated 1                                               Actual          Variance 3
                                                                                                     Authorizations 2   Estimated
                                                                                                 Operating Expenses ($000)
Marketing and
 Promoting B.C. ........................................                                   9,530                    0          9,530               8,664             (866)
Enhancing Economic
 Development .............................................                               136,085                    0        136,085             151,581           15,496
2010 Olympic and Paralympic
Winter Games Secretariat................                                                 153,010                    0        153,010             110,288          (42,722)
Executive and
 Support Services ...................................                                     11,203                 355          11,558              12,142              585
Subtotal ...............................................................                 309,828                 355         310,183             282,676          (27,508)
Adjustment of Prior Year’s
Accrual 4 .................................................................                      0                  0               0                 767            (767)
         Total .................................................................        309,828                  355         310,183            281,909          (28,275)
     1
       These amounts have been presented for comparative purposes only, to be consistent with the presentation of the 2006/07 Estimates.
     2
       “Other Authorizations” include Supplementary Estimates, Statutory Appropriations and Contingencies.
     3
       Variance is based on Actual and Total Estimated expenses.
     4
       Adjustment of prior year’s accruals. Amounts reflect adjustment of prior year’s expense accruals, which were credited to Ministry expense and
       not available for the Ministry to spend.




2                                                                                                                                      2006/07 Annual Service Plan Report
                                                                                     Ministry of Economic Development


                                                                                                        Other              Total
              Core Business Areas                                                Estimated 1                                             Actual          Variance 3
                                                                                                    Authorizations 2    Estimated
                                                                                               Full-time Equivalents (FTEs)
 Marketing and Promoting B.C.                                                                  49                  0                49              48                (1)
 Enhancing Economic
  Development ............................................                                     49                  0                49              46                (3)
 2010 Olympic and Paralympic
 Winter Games Secretariat ..............                                                       22                  0                22              23                 1
 Executive and
  Support Services ....................................                                        29                  0                29              28                (1)
        Total ................................................................            149                      0            149                145                (4)
                                                                        Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
 Marketing and Promoting B.C.                                                              415                     0            415                  0           (415)
 Enhancing Economic
  Development..............................................                                    25                  0                25               0            (25)
 2010 Olympic and Paralympic
  Winter Games Secretariat ..........                                                    2,229                     0           2,229         1,840.7           (388.3)
 Executive and Support Services                                                            130                     0            130           242.3             112.3
        Total ................................................................           2,799                     0          2,799               2083          (716)
    1
      These amounts have been presented for comparative purposes only, to be consistent with the presentation of the 2006/07 Estimates.
      Schedule A of the Estimates, presents a detailed reconciliation.
    2
      “Other Authorizations” include Supplementary Estimates, Statutory Appropriations and Contingencies.
    3
      Variance is based on Actual vs. Total Estimated expenses.



Core business areas descriptions:

Marketing and Promoting British Columbia.
This business area provides for facilitating trade and investment and communicating 
British Columbia’s advantages and opportunities; administering and financing the Provincial 
Nominee Program to attract skilled immigrants; delivering effective business immigration 
programs to attract economic immigration clients to strategic sectors and industries in all regions 
of the province; showcasing British Columbia at national and international events; implementing 
strategies and funding organizations to promote British Columbia and achieve improvements in 
specific areas such as trade, science and technology; planning and managing trade missions to 
profile British Columbia in key markets; and assisting the private sector to leverage identified 
marketing opportunities. Recoveries are received from parties external to government for services 
provided under this business area.



2006/07 Annual Service Plan Report                                                                                                                                     2
                                Ministry of Economic Development


Enhancing Economic Development (including the Northern Development Fund
Special Account: a statutory appropriation).
This business area provides for development of comprehensive economic strategies; working 
with investors to facilitate economic development and job creation; managing programs 
and providing financial assistance to improve urban and rural infrastructure throughout the 
province; administering federal/provincial infrastructure and economic programs; administering 
immigration credential recognition programs and labour market planning; developing worker 
training strategies and implementing strategic labour market policies; providing funding to the 
Industry Training Authority; and providing support, including financial assistance, for projects, 
initiatives and trusts that support economic growth and diversification throughout the province. 
Recoveries are received from parties external to government for services provided under this 
business area.

The Northern Development Fund Special Account is a statutory appropriation, which is 
governed under the BC-Alcan Northern Development Fund.


2010 Olympic and Paralympic Winter Games Secretariat.
This business area provides for the 2010 Olympic and Paralympic Winter Games Secretariat to 
coordinate intra- and inter-governmental relations; fund initiatives that support the Olympic and 
Paralympic Winter Games and economic development activities related to the Games throughout 
the province, including support for organizations such as the Vancouver Organizing Committee. 
Some costs are partially recovered from external organizations for program services provided 
under this business area.


Executive and Support Services (including the Minister’s Office, Corporate
Services, Columbia Basin Trust and Reserves for Doubtful Accounts).
This business area provides for the office of the Minister of Economic Development, 
administration, and ministry executive support including the deputy ministers’ offices, financial 
and human resources, legislation and administrative services, library operations, records 
management, and information systems. This business area provides for administrative support 
services for the Ministry of Energy, Mines and Petroleum Resources and operating assistance 
grants to the Columbia Basin Trust. This business area also provides for reserves for doubtful 
accounts and write-downs of investments. Recoveries are received from parties external to 
government for Ministry services provided for in this business area.




0                                                                    2006/07 Annual Service Plan Report
                                     Ministry of Economic Development


Explanation of variances:
  1.  Enhancing Economic Development:  Due to under spending in Infrastructure 
      grants (time lag) and major post-secondary sports facilities grants (matching funding 
      requirements), the Division undertook some major government spending priorities when 
      it became clear the initial under-spending would occur. These expenditures were consistent 
      with the Division’s business area description.
  2.  2010 Winter Olympic Games Secretariat:  This business area was under-spent due to 
      delays in the completion of detailed arrangements to support venue funding agreements 
      and to timing revisions regarding medical and security funding. Both these items’ budgets 
      have been re-profiled in future years to recognize these situations.
  3.  Executive and Support Services:  Increases in building occupancy costs and information 
      technology (voice and data) support services costs were instrumental in causing this 
      variance.




2006/07 Annual Service Plan Report                                                              1
                                             Ministry of Economic Development



Ministry Contact Information
Staff in regional offices can assist with enquiries or can serve as local points of contact for services 
available to the public.

                 Location                          Telephone              Fax                   E-mail
                                                         Cariboo Region
Cariboo Regional Office
Ministry of Economic Development
                                                  250 565-6685       250 565-4279        ecdvCariboo@gov.bc.ca
200 – 1488 Fourth Avenue,
Prince George, B.C. V2L 4Y2
                                                        Kootenay Region
Kootenay Regional Office
Ministry of Economic Development
                                                  250 426-1708       250 426-1767       ecdvKootenay@gov.bc.ca
1902 Theatre Road,
Cranbrook, B.C. V1C 7G1
                                                       Northwest Region
Northwest Regional Office
Ministry of Economic Development
                                                  250 847-7797       250 847-7556       ecdvNorthwest@gov.bc.ca
3726 Alfred Avenue, Bag 5000
Smithers, B.C. V0J 2N0
                                                  Thompson-Okanagan Region
Thompson-Okanagan Regional Office
Ministry of Economic Development
                                                  250 377-2171       250 377-2150   ecdvThompsonOkanagan@gov.bc.ca
Suite 210 – 301 Victoria Street,
Kamloops, B.C. V2C 2A3
                                                Vancouver Island and Coast Region
Vancouver Island and Coast Regional Office
Ministry of Economic Development
                                                  250 751-3227       250 751-3245     ecdvVanIslandCoast@gov.bc.ca
Suite 142 – 2080 Labieux Road,
Nanaimo, B.C. V9T 6J9




2                                                                                  2006/07 Annual Service Plan Report

				
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